What is a Cash Balance Plan? A cash balance plan is a defined benefit plan that defines the benefit in terms that are more characteristic…
Calculating Defined Benefit Plan Benefits Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants.…
The Advantages of a Defined Benefit Plan Defined benefit pension plans provide a fixed, pre-established benefit for employees at retirement. Employers can contribute (and deduct)…
What is a Defined Benefit Plan? A defined benefit plan, funded by the employer, promises you a specific monthly benefit at retirement. For example, your…
Calculating 401(k) Benefits—the Power of Tax Deferral Saving through a 401(k) plan is the best way to retire with real wealth because it is based on…
What are the Types of 401(k) Plans? With a 401(k) plan, employees can choose to defer some of their salary. Instead of receiving that amount in…
What is the Most Popular Type of 401(k) Plan? Safe Harbor 401(k) Plans are very popular with business owners and plan participants alike. The Safe…
What is a Third-Party Administrator? The third-party plan administrator (TPA) performs the most important functions in terms of maximizing tax and retirement benefits for the…
What is a 401(k) Record-Keeper? The primary purpose of a 401(k) plan record-keeper is to keep track of the plan money. Record-keepers are also responsible…
What is 401(k) Plan Testing? Plan sponsors must test traditional 401(k) plans each year to ensure that the contributions made by and for rank-and-file employees…